Expert analysis of the government purse has revealed that Chancellor Philip Hammond would need to come up with £11bn more than cuts have already saved the government if it is to curb austerity.
The Institute for Fiscal Studies (IFS) report, published ahead of next month’s Spending Review, said cuts to public services are likely to continue.
Hammond has not yet said how the government budget will be split between services. But the IFS said it could be announced in the Spring Statement on 13 March, and that it may well be “one of the most important non-Brexit policy decisions to be made in the current parliament”.
The Chancellor is yet to confirm how much money will be made available to departments at the 2019 Spending Review.
Our new research finds that to meet his promise to end austerity, Phillip Hammond will need to find billions of extra funding.
Read more: https://t.co/5QuSZ7td6npic.twitter.com/BvSHWtJVoP
— Institute for Fiscal Studies (@TheIFS) February 11, 2019
The study laid out how plans set in the Autumn 2018 Budget will lead to cuts in day-to-day spending on public services outside of health, defence and overseas aid.
Those budgets have already faced cuts of £40bn since 2010.